Iowa Senator Questions FTC, HISA Over Implementation

Seven-term Sen. Chuck Grassley of Iowa sent a June 27 letter to the Federal Trade Commission and the Horseracing Integrity and Safety Authority seeking answers to questions about their inability to meet the "statutorily mandated deadline" of July 1 for certain elements of the federal HISA program.

Established when the Horseracing Integrity and Safety Act was signed into federal law in 2020, the Authority is responsible for drafting and enforcing uniform safety and integrity rules in Thoroughbred racing in the U.S. Overseen by FTC, HISA was created to implement, for the first time, a national, uniform set of rules applicable to every Thoroughbred racing participant and racetrack facility. HISA is comprised of two programs: the Racetrack Safety Program, which goes into effect July 1, and the Anti-Doping and Medication Control Program, which will go into effect in January 2023. 

Grassley was joined by fellow Iowa Sen. Joni Ernst, Louisiana Sen. John Kennedy, and West Virginia Sen. Joe Manchin in signing the letter, which was distributed to media outlets via a release issued by the Iowa Horsemen's Benevolent and Protective Association.

Earlier this year, the National HBPA, affiliated HBPAs, and other entities were unsuccessful in challenging HISA in two separate courts, arguing, in part, that the Act gave unlawful regulatory power to a private entity. They further claimed it was unconstitutional for the Authority to be authorized to investigate parties accused of violating regulations, bring civil actions against them, and adjudicate doping and medication infractions.

Critics of HISA claim it creates bureaucratic red tape and additional costs without substantive policy changes that will improve safety.

Grassley's letter further questions whether the Authority consulted appropriate industry representatives before issuing regulations despite objections in public comment. He wrote of "limited supply chain availability of horseshoes and riding crops."

"And now, only one week before the rule was set to take effect, the Authority published a notice announcing a one-month delay in enforcement of these rules," Grassley continued. "This chaotic implementation process and poor communication by the Authority makes it difficult for industry participants to comply with the new rules and regulations. Additionally, continuously changing implementation dates for new rules and regulations, and last-minute delays, cause more confusion and difficulty with implementation."

Also in the letter, Grassley and his colleagues question the FTC's ability "to effectively provide oversight of the Authority."

A HISA spokesperson did not specifically address Grassley's referenced concerns in a statement but indicated HISA would respond to his questions in a timely fashion.

"This week, HISA is laser-focused on preparing for the July 1 implementation date," said Liz Beadle, a HISA spokesperson. "HISA fully intends to respond to the Senators' questions in writing by July 11, per their request."

The FTC in March approved the racetrack safety regulations propounded by the Authority. The Iowa HBPA release called this a "rubber-stamp order" despite what it said were useful and constructive public comments from industry stakeholders that the Iowa HBPA and National NBPA believe could have improved federal rules.

"Hard-working, day-to-day horsemen and horsewomen want safe and clean horse racing, and the Authority is failing in its duty to realize this goal," National HBPA CEO Eric Hamelback said. "The Authority and HISA staff are populated with members who do not offer a true inclusive representation for the entire industry, and because of that we are seeing what lack of proper input from all participants causes.

"They are brazenly violating federal law by missing deadlines, and staff are admitting in public forums that the FTC gave them permission to do so. We fully support Senator Grassley's efforts to find out why this is happening."